Document of The World Bank Public Disclosure Authorized Report No: ICR0000873 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD 4348-CHA, IDA 3097-CHA) ON A LOAN/ CREDIT Public Disclosure Authorized IN THE AMOUNT OF US$72.0 MILLION AND SDR14.9 MILLION (US$20 MILLION EQUIVALENT) TO THE PEOPLE'S REPUBLIC OF CHINA FOR THE Public Disclosure Authorized GUANGXI URBAN ENVIRONMENT PROJECT June 23, 2008 Urban Development Sector Unit Sustainable Development Department East Asia and Pacific Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective March 2008) Currency Unit = Yuan Yuan 1.00 = US$0.14 US$ 1.00 = Yuan 7.2 Fiscal Year January 1 – December 31 ABBREVIATIONS AND ACRONYMS BOD Biological Oxygen Demand BOT Build Operate and Transfer COD Chemical Oxygen Demand DRC Development Reform Committee EA Environmental Assessment EPB Environmental Protection Bureau FM Financier Management GEPB Guangxi Environmental Protection Bureau GM Guilin Municipality GR Guangxi Region IPCAP Industrial Pollution Control Action Plan ICR Implementation Completion & Results (Report) GAR Guangxi Autonomous Region GSC Guilin Sewerage Company GUEPO Guangxi Urban Environment Project Office JBIC Japan Bank for International Cooperation LOA Loan Administration m3/d Cubic meters per day MOF Ministry of Finance NGO Non-government Organization NSC Nanning Sewerage Company NWSG Nanning Water Services Group NM Nanning Municipality O&M Operation and Maintenance PDO Project Development Objective PMO Project Management Office QAG Quality Assurance Group QEA Quality at Entry Assessment QSA Quality of Supervision Assessment RAP Resettlement Action Plan SAR Staff Appraisal Report SEPA State Environmental Protection Agency STP Sewage Treatment Plant Vice President Mr. James W. Adams Country Director Mr. David Dollar Sector Manager Mr. Ede Jorge Ijjasz-Vasquez Task Team Leader Ms Chongwu Sun China GUANGXI URBAN ENVIRONMENT PROJECT CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff 1 1. Project Context, Development Objectives and Design 2. Key Factors Affecting Implementation and Outcomes 5 3. Assessment of Outcomes 8 4. Assessment of Risk to Development Outcome 12 5. Assessment of Bank and Borrower Performance 13 6. Lessons Learned 18 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners 18 Annex 1. Key Performance Indicators 20 Annex 2. Project Costs and Financing 31 Annex 3. Outputs by Component 33 Annex 4. Industrial Pollution Control Plan 35 Annex 5. Economic and Financial Analysis 39 Annex 6. Resettlement Implementation 42 Annex 7. Bank Lending and Implementation Support/Supervision Processes 44 Annex 8. Detailed Ratings of Bank and Borrower Performance 47 Annex 9. Summary of Borrower's ICR and/or Comments on Draft ICR 48 Annex 10. List of Supporting Documents 64 MAPS - IBRD 29651R, 28799R, 28800R and 36180 A. Basic Information GUANGXI URBAN Country: China Project Name: ENVIRONMENT PROJECT IBRD-43480,IDA- Project ID: P036414 L/C/TF Number(s): 30970 ICR Date: 06/27/2008 ICR Type: Core ICR Lending Instrument: SIL Borrower: CHINA Original Total USD 92.0M Disbursed Amount: USD 78.3M Commitment: Environmental Category: A Implementing Agencies: Guangxi Zhuang Auto. Region Government of Nanning Municipality Government of Guilin Municipality Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 04/03/1996 Effectiveness: 10/30/1998 10/30/1998 Appraisal: 06/26/1997 Restructuring(s): 05/24/2005 Approval: 06/16/1998 Mid-term Review: 11/02/2001 Closing: 12/31/2004 12/31/2007 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Low or Negligible Bank Performance: Satisfactory Borrower Performance: Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Satisfactory Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Satisfactory Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of Yes Satisfactory time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Agro-industry 4 General transportation sector 2 General water, sanitation and flood protection sector 10 Sewerage 76 80 Solid waste management 5 7 Water supply 13 3 Theme Code (Primary/Secondary) Access to urban services and housing Primary Not Applicable Environmental policies and institutions Primary Not Applicable Pollution management and environmental health Primary Primary Water resource management Primary Secondary E. Bank Staff Positions At ICR At Approval Vice President: James W. Adams Jean-Michel Severino Country Director: David R. Dollar Yukon Huang Sector Manager: Ede Jorge Ijjasz-Vasquez Keshav Varma Project Team Leader: Chongwu Sun Songsu Choi ICR Team Leader: Chongwu Sun ICR Primary Author: A. D. C. Godavitarne ii F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The project objectives are: (a) to improve the quality of major water bodies, in particular Chaoyang stream and Yongjiang in Nanning and Lijiang and its tributaries in Guilin; (b) to regulate the flow of the Lijiang; (c) to improve institutional and financial capacity for environmental protection, environmental services and water resource management; (d) to pilot a participatory approach to environmental improvement in poor neighborhoods; and (e) to implement pilot schemes for control of sugar refinery pollution. Revised Project Development Objectives (as approved by original approving authority) (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Indicator 1 : Improvement of sewerage and drainage management in Nanning. Chaoyangxi and Yongjiang in Value These are available in the Nanning should quantitative or project files for each attain or maintain Qualitative) component. Class V and Class III respectively. Date achieved 10/31/1998 12/31/2007 Comments (incl. % achievement) Indicator 2 : Improvement of sewerage and drainage management in Guilin. Lijiang River in Value These are available in the Guilin should quantitative or project files for each maintain Class II Qualitative) component. water quality. Date achieved 10/31/1998 12/31/2007 Comments (incl. % achievement) Indicator 3 : Sugar refinery pollution control. Implementation of the component Value will ultimately Available in the project quantitative or translate into files. Qualitative) better water quality for major rivers in the iii region. Date achieved 10/31/1998 12/31/2007 Comments (incl. % achievement) Indicator 4 : EPB strengthening. Improvement of monitoring capacity, as regards frequency Value Available in the project and variables quantitative or files. analyzed, Qualitative) improved reactions times for response to accidents and complaints. Date achieved 10/31/1998 12/31/2007 Comments (incl. % achievement) Indicator 5 : Small area improvement. About 100,000 people who are current residents with incomes Value These are available in the below the city quantitative or project files for each average will Qualitative) component. benefit from this component to have improved environmental service. Date achieved 10/31/1998 12/31/2007 Comments (incl. % achievement) Indicator 6 : Solid waste management in Guilin 400 ton/day capacity landfill Value These are available in the has been realized quantitative or project files. and 800 ton/day Qualitative) transfer capacity will be realized. Date achieved 10/31/1998 12/31/2006 Comments (incl. % achievement) Indicator 7 : Institutional development for sewerage companies in Nanning and Guilin. Value These are available in the The companies iv quantitative or project files for each should Qualitative) component. demonstrate attributes of financial viability and have a continuous availability of funds for reinvestment. Date achieved 10/31/1998 12/31/2007 Comments (incl. % achievement) (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Indicator 1 : Length of the sewer constructed in Nanning and Guilin Value Data to be sought (quantitative 0 during ICR or Qualitative) preparation. Date achieved 10/31/1997 12/31/2007 Comments (incl. % achievement) Indicator 2 : Length of sewers cleaned and repaired every year (km/annually) Value (quantitative NA 160 km or Qualitative) Date achieved 10/31/1997 12/31/2007 Comments (incl. % achievement) Indicator 3 : Jiangnan WWTP, voluume of sewage treated (000 m3/day) Value (quantitative 0 240,000m3/day or Qualitative) Date achieved 10/31/1997 12/31/2007 Comments (incl. % achievement) v G. Ratings of Project Performance in ISRs Actual Date ISR No. DO IP Disbursements Archived (USD millions) 1 08/12/1998 Satisfactory Satisfactory 0.00 2 02/03/1999 Satisfactory Satisfactory 3.50 3 09/20/1999 Satisfactory Satisfactory 3.95 4 03/31/2000 Satisfactory Satisfactory 4.07 5 09/20/2000 Satisfactory Satisfactory